diff --git a/CHANGELOG.md b/CHANGELOG.md
index 40e6aa4ba8d..91a5c7833b7 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,5 +1,8 @@
 ## dbt 0.17.1 (Release TBD)
 
+### Fixes
+- Hash name of local packages ([#2600](https://github.com/fishtown-analytics/dbt/pull/2600))
+
 ## dbt 0.17.1rc2 (June 25, 2020)
 
 
diff --git a/core/dbt/task/deps.py b/core/dbt/task/deps.py
index 14320fbf2f4..f6979295cb9 100644
--- a/core/dbt/task/deps.py
+++ b/core/dbt/task/deps.py
@@ -26,6 +26,7 @@ def track_package_install(
         # Hub packages do not need to be hashed, as they are public
         # Use the string 'local' for local package versions
         if source_type == 'local':
+            package_name = dbt.utils.md5(package_name)
             version = 'local'
         elif source_type != 'hub':
             package_name = dbt.utils.md5(package_name)